The name
Bly comes from the
Klamath word ''p'lai'', meaning 'up' or 'high', referring to its location at the upper
Sprague River. The Sprague River post office was established in the area in 1873, and the name was changed to Bly in 1883. The 21st-century community of
Sprague River is downstream and west of Bly and
Beatty. Around 1900, Bly had two general stores, two hotels, and a saloon.
World War II Bly is also the site of the only fatalities of
World War II in the contiguous U.S. On May 5, 1945, a Japanese
Fu-Go balloon bomb exploded as it was being pulled from the woods by curious picnickers. Rev. Mitchell heard the explosion and discovered the bodies. The victims' families were compensated by the government. A memorial was erected at what is now the
Mitchell Recreation Area. ==Parks and recreation==